NC ends Medicaid contract with Western Highlands

Published: Tuesday, April 9, 2013 at 8:12 a.m.

Last Modified: Tuesday, April 9, 2013 at 8:12 a.m.

ASHEVILLE, N.C. (AP) — North Carolina is ending its Medicaid contract with Western Highlands Network later this year.

The change takes effect July 31 and that this means mental health providers and Medicaid clients will have to go through another managed care organization.

Western Highlands Network has oversight for state-paid and Medicaid-paid mental health services in eight counties in western North Carolina. The company started to directly administer the federal Medicaid program and transitioned to a managed care organization.

But in the first six months of 2012, Western Highlands accumulated a multimillion budget deficit, and the company fired its CEO in July.

Company officials say they were surprised by the state's decision.

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